That's a great question. Like most areas, construciton costs are going to vary dramatically depending on the service provider and teh level of quality and finish. That said, as a broad range you'll be looking at $250/sf on the low end, all the way up to $600-700k/sf on the higher end in Montecito for the luxury estates. Most "affordable" cosntruction with reasonable quality will be in the $300-400/SF range.

I hope that helps Linda. Are you considering remodeling your home, or are you considering building a custom home? I'd be happy to assist you, as well as put you in touch with some local contractors with good reputations for quality and a range of prices.

The "most desirable" area is going to vary substantially from buyer to buyer. Some are looking for the largest newest feeling condo possible (which would put you either in Goleta or Carpinteria) and others are looking for the best location (which will vary, but in many cases would be closest to downtown Santa Barbara in an older condo). The number of condos under $500K is limited and the majority of units in that price range are older, but there are some excellent deals these days.

Please feel free to contact me at your convenience and I'd be happy to discuss your needs in greater detail. I can get you going in the right direction and, since I'm not a specialist in that market, will refer you to an excellent, full-time agent with lots of local condo experience.

Let me know a little more about what you are wanting to find out and I would be happy to be of help.

This complex was built in the 80's and there are about 150 units. Most of the units are 2 bed 2 bath although there are plenty of 3 beds and some 1 bed units. It sits on the mtn side of the freeway but very close to the beach. About a 2-4 minute bike ride. At the peak many of these units were selling comfortably in the $600,000 to $700,000 range. Now they are more in the $400,000 to $500,000 range.

Again, let me know a little more about what your needs might be and I would be happy to be of help.

I have attached a list here of comparables for you to look at so you can get a feel of the market there. The unit you were asking about expired 6 months ago so I am curious about your questions on this particular unit.

Our in-house lender shared with us that after Memoria Day interest rates will increase. There was a modest increase in rates this week, but they are still remarkably low. You should see rates between 4.5 and 5% for a 30 year fixed for awhile. Make sure to check with your lender before locking in a rate. There may be fees for extending that lock.... more

Hi G,
Yes, we do still offer construction to perm loans and FHA203k loans. Let me know if I can assist you.

Will Addo is a Renovation Specialist with Wells Fargo. We finance 1 in every 4 homes in your Market. While having no Best Sellers to his name, he's really a decent chap for all intensive purposes.... more

That's a great question. They are in the ballpark of 900 SF. If you have any other questions, please don't hesitate to ask me. I'd be happy to keep you updated on any Forte Ranch condos that come on the market, or actively search for one not yet on the market.

Often times I learn about properties, that are "quietly for sale" or are not yet listed in the MLS or online, called "pocket listings". If you tell me more about what you are looking for, I may be able to recommend a pocket listing or two that may fit your needs. My clients really appreciate the opportunity to buy a home without the competition of it being on the open market yet. Let me know if you are interested, and I'll give you some more info.

Another service that may be helpful is our automatic email home finder, where we create a custom search in the MLS for you using your specific criteria. Then, every week, or at a frequency of your choosing all of the new listings that match your criteria will be emailed to you. It's a great way to learn about, or keep up-to-date on the current inventory in our market and gives you a leg-up on other potential buyers who only hear about a property through the newspaper.

If I can be of service, please feel free to call me directly at 805-637-7148 or email me at Daniel@ZiaGroup.com. Have a good weekend.... more

Shopper, there are certainly loans out there with an interest rate of less than 5% 30 year fixed TODAY! Who knows where they'll be Monday or a week or month from now. You do not need to put down 20% down payment either. FHA for example will allow you to put down as little as 3.5% down payment. The big question will be: Do you QUALIFY! By that I mean you will have to prove your income is sufficient to justify approval taking into consideration the total monthly payment on the purchase, your debt (credit cards, car payment etc.) and what your FICO score is. Min. Fico score is 620. You would be best served by getting pre-qualifed by a bank or qualified mortgage broker. They will ask you pertinent questions, run your credit report and tell you how much you qualify to buy! I am a mortgage broker with 25 years experience and would be happy to run a pre-qual for you if you wish. Feel free to contact me at the following email address.

Yes, a home in the "Mesa" area of Santa Barbara sold for $1,150,000 and was flipped for $1,399,000 back in 2006. I believe this is the property you are talking about. Out of respect for the new owners' privacy, it's probably better not to publish the exact address. One last comment, the "super high price" was not unreasonable at the time.

Prices in the area have come down substantially overall, but as always it's a story of several price ranges:

"Entry level" homes under $1,000,000 have adjusted between 15% and 25%. We have a percentage of foreclosure properties, but so far it's been much lower than most areas. Because of low interest rates and renewed buyer interest for these excellent opportunities, homes in this range have been selling at a rapid rate. Inventory is low and we've seen a strong base form.

"Mid range" homes between $1,000,000 and $5,000,000 have adjusted 10% to 15% overall, though there will likely be additional pressure in this price range as the economy continues to limp along. The owners of these homes, in many cases doctors, attorneys, and business owners, have seen huge drops in their stock portfolios and are now experincing pressure on their business income from reduced consumer and business spending. Great deals are available for cash buyers or those able to handle the continued difficulty of qualifying for jumbo loans. When jumbo loan products become more available and rates come down a bit this range of the market will stabilize, but until then opportunities are there.

"High end" homes from $5,000,000 to more than $50,000,000 are the most interesting story of all. Note in most cases that these owners don't need to sell, but sometimes make business decisions to sell and take losses. As a result, some of the best deals are happening here. There are certain instances where properties have sold up to 50% off of their original asking prices! On the other hand, "most" owners know they own a unique commodity (there isn't much property in Santa Barbara/Montecito) and they've held their ground knowing someone will eventually pay the price...even if it's several years down the line.

Hope that helps.

Best regards,

Jon

PS - One last note: While "subprime" loan resets have already peaked in California (meaning poor credit and/or income loans with rates that were fixed for 2 to 5 years have started adjusting), "Alt-A" loans (usually better credit but stated income...also referred to as "A-minus") and "Option ARM" loans (very low intro rates which jump substantially after 2 to 5 years) will not see a peak until 2010. Approximately 1/3 of each type of loans in California will be making a first adjustment in that year. Please don't overestimate my concerns, as the effects should be tempered by stronger consumer confidence a greater availability of credit, but the bottom line is we're not past all of our loan pressures yet.... more

What is an REO? REO means Real Estate Owned. Everyone is talking about REOs these days. But before you consider buying one, there are a few things you should know about REOs. These properties are generally owned by banks, credit unions, mortgage companies and sometimes private companies. It has become increasingly common for the news to report foreclosure issues and homeowners losing their houses and other effects of the mortgage crisis. As a result there have been dramatic increases in the marketing of REOs to the general public. It used to be that you could barely get your hands on lenders' foreclosure lists. But these days, everyone is trying to sell REOs.

The people that are being marketed by these REO sellers are mainly first-time and minority potential homebuyers. Fannie Mae works with many companies to help these types of homebuyers realize the American Dream of owning your home using reasonable and affordable loans. There has been a shift in the industry from marketing REOs to those who "flip" houses to first-time homebuyers. The dramatic increase in foreclosures has left many lenders with high inventories of REOs, resulting in potentially advantageous opportunities for individuals who never has access before, to gain access to the real estate market. Additionally, the number of foreclosures is allowing simple real estate investors to diversify and expand their portfolios.

There are many laws regarding foreclosures and the process. Mainly, when the property is in the pre-foreclosure and auction stage, the bank (owner) is only legally entitled to its losses and expenses. This is to say that the bank (owner) is not entitled to gain a profit from the sale. This changes however, after the property has been foreclosed on it becomes an REO.

REOs are often considered to be fabulous starter homes because the sales prices for these properties is generally lower than that of a similar non-REO property. In today's market however, this may not always be the case. This is mostly due to the fact of the number of such properties in the market. Even though a property is an REO, it does not mean that the owner will not make a profit off the sale. Remember, after the foreclosure process, the REO owner is now allowed to make a profit, which may affect the sale price. A buyer will generally be more likely to get a lower price when purchasing a home in the pre-foreclosure or auction stage.

Let's say now you've decided you want an REO. You should know there are risks associated with this "great deal" you are getting. When considering your REO purchase, make sure you have access and contact information for various experts who will guide you in the inspection process.

You will need a Realtor, who can protect your interests and make sure you get the best deal possible. Your Realtor will be able to generate reports for you showing comparable sales prices which will enable you to assess whether the asking price for the REO you are considering is appropriate. There are some statistics that show the average price of an REO is 15 - 30 percent lower of comparable sales prices. However, there are REASONS for this.

REOs are sold AS-IS. This means that what you see is what you get. You will need a qualified home inspector to guide you with this step of your REO purchase process. Only a qualified inspector will be able to reveal latent flaws or issues that you will need to consider before you purchase the REO. You will need to factor in the costs of potentially repairing, replacing or rehabilitating the necessary sections of the property into the price you will be paying.

REOs take longer. When purchasing an REO, you are not dealing with Joe and Jane Smith homeowner, you are dealing with either a Bank or an Investment Company. The decision making and sale approval process in a business takes much longer than with individuals. It could take weeks to get an approval on your offer. Additionally, even though most banks will remove tax liens and occupants (if need be) from the property, in order to protect yourself, you should perform a title search. Now you may not personally be able to do this, which is why you will hire a company to perform such a search for you, and the results may take up to a week to review. Another potentially time-consuming process is getting an appraisal. As a buyer, you should not trust the seller's appraisal blindly, get your own! Any time or money you spend beforehand may well be worth it in the long run. You want to know that you are getting what you are paying for!

With the right amount of patience and knowledge and the care of a Crestico Agent, buying an REO will seem like a breeze. We have agents that specialize in purchasing REOs. When you work with a Crestico Agent, he/she works for you to get all the experts you need! From inspectors, to title searches to appraisers, your Crestico Agent takes care of it all for you!! Call us today!... more

I recommend that you ask either a probate attorney and/or a title officer regarding questions you have.

In situations where people own property and then marry, property owned prior to the marriage is not community property (my understanding). However, when that property is sold after you marry, then proceeds from that property (cash) would still be your property.

It sounds to me as though an attorney could advise you on the best way to move forward. it depends what you are trying to accomplish (preserving a separate asset after marriage or combining assets). Perhaps a pre-nuptual agreement would be in order.

As I said, ask an attorney and title professional for competent advice.... more

From 10 years ago that would be a challenage HOWEVER contact a local Trulia agent or realtor in your area determine what the comps are for the property. Realtor would need to comp to that area, condo complex, and etc.

CONCERN: City issued permits I am assuming, on some redo's for a property requires city approval.... more

* What are the taxes and home owners insurance
* What is your other debt (revolving - things that show up on your credit report)

On an FHA loan your ratios are 31/43 -31 % front end ratio which includes housing payment divided by debt. The back end ratio is 43% - that is all your revolving debt plus your housing expense divided by your income.
I have seen loan get accepted with higher ratios with great credit scores and a few months cash reserves.

Go to our website www.myallied.net for calculators to help you figure it out. Good Luck!... more

Great question. Unfortunately, the lending market and atmosphere has changed dramatically in the past 12 months. There is virtually no 0% down financing through conventional channels. That said, if you are a first time home buyer, there are FHA loans available that allow you to purchase a home with ath as little as 3% down (I believe that number is increasing to 3.5% in January). There are some programs out there that allow the seller to credit back a certain % to the buyer for closing costs, so theoretically a 0% down option may be possible that route. Another way to achieve a 0% down purchase is get a conventional 1st loan for 75-80% of the value of the property and then get the seller to carry back a 2nd loan for the remainder. This situation could also be combined with an FHA loan. That type of situation does require a motivated and flexible seller, and expect to pay a significantly higher interest rate on that 2nd loan as the seller is taking the brunt portion of the risk should you, as the buyer, default on the loan.

I hope that helps. I'd be happy to talk to you more about the different requirements for FHA or conventional loans. That said, your best bet is to talk to a qualified loan specialist, and I'd be happy to recommend one, or several, here in the Santa Barbara area which are excellent.

Please feel free to call me on my cell phone, any time, at 805-637-7148.... more

The seller s pays the listing agent a commission of x for the sale of teh property. the buyer agent can get paid by the buyer a set commission in whicch they agree upon or the buyer broker gets a commission from the listing agent at closing for a specified amount offered in the MLS. hope this helps.... more

Unfortunately I don't have a simple answer to your question. Many factors including price versus comparable properties, agent capabilities (marketing and networking leading to overall exposure of your home to the right potential buyers), and general economic/lending conditions are all probably contributing to your time on market.

There are several properties on the market in Montecito that are very good buys right now, but lending difficulties are making it difficult for buyers to commit to a property. Are there specific buyers that would be attracted to your type of property? Your agent should have had this discussion with you and should be targeting them specifically. Is there anything you could or should do to make your property cosmetically more attractive? Are you priced higher than comparable properties? Would you be willing to carry a second mortgage for a short term to help financing? Any of these items could help.

I'm sorry to say there may be continued downward pressure on pricing if the economy worsens. The low end in Santa Barbara has gained a measure of stability, but your price range, even though it's entry-level for Montecito could still require price reductions. Look at it this way: If you own a 3 bedroom, 2 bath, 1950s home in relatively original condition a $1.4M price was great a while ago. A buyer could spend $300k on remodeling and still be confident in their value. As the market pushes higher priced properties lower, a property that was once $2M could sell at $1.7M. That potential buyer, as long as they can afford the $1.7M, will get a larger house, in better condition, possibly in a better location for about the same money as yours and they wouldn't have to remodel. If they cannot afford the higher price, you have to look better than anything else on the market. In short, your buyer pool is shrinking to entry-level buyers only and you need to focus marketing efforts.

I would generally be happy to discuss further details with you but am restricted if you're actively listed. Your agent should be able to help as an experienced professional, and their managing broker may be able to offer further advice.

Best regards,

Jon Perkins

PS - The higher end of the market from $2M to $30M is likely to be pressured over the next year or two. It will be interesting to see how many sellers are willing and able to hold firm, and how many drop prices to get their homes sold. Santa Barbara and Montecito have been better able to weather downturns in the past because of, well, the weather (and the natural beauty, the great people, the great restaurants, the cultural offerings, the range of outdoor activities, etc.), but we're not completely immune.... more

There are two classifications of "foreclosure homes". The first is labeled "short sales". These are homes that are currently going through the foreclosure process, but have not become banked-owned yet. In this process, the homeowner has to classify for being in financial duress and can no longer make their mortgage payments. They approach their bank and a real estate agent and all three parties work to sell the home before it goes through foreclosure process and bank to the bank. These homes are sold for less that what is owed on the property, so not only is the homeowner losing all their equity, but the bank is also taking a major loss. Sometimes the bank is willing to do this though if they consider it the "lesser of two evils". Often times, if they take a property back in foreclosure, they have repair/maintenance costs, legal fees, marketing costs, etc. They also are severely limited in the amount of money they can lend out based on the dollar amount of real estate they are holding in their portfolio. Short sales can be extremely frustrating for buyers, so I also caution my clients against moving forward on one of these properties. While the seller may approve the offer right away, the bank or banks may not give final approval until 8-10 weeks, or more! I had one recent client who waited 100 days for the Bank's final approval until they told us "no". It was an extremely frustrating process for all parties involved.

As to the owner foreclosure situation, these are classified as REO's or Real estate owned properties (Bank-owned properties). These are properties that have gone all the way through the foreclosure process and are currently owned by the bank and all their books. The banks are very motivated to sell them and as a homebuyer, the process of buying one of these homes is very similar to working with a typical seller. REO's are some of the best deals on the market in the under $1 million sector and I'd be happy to recommend a few. There are some caveats to working with a bank when buying an REO. One of these is that they will counter your offer with a standard, typically 8-page, counteroffer/addendum that basically states that they know nothing about the property and that they don't have to fill out the same disclosures as a typical seller. In addition, banks can be less flexible as far as creative offers and prefer "As-is" offers where items like repairs, pest work, etc. are already incorporated into a lower offered price by the buyers. They can also be less flexible during escrow if issues arise, you need to extend escrow, etc. All-in-all I highly recommend not pursuing short sales, but definitely pursuing bank-owned properties as well as properties listed by conventional motivated sellers.

I hope this helps. Please feel free to view my website for more information: www.theziagroup.com. I would love to assist you in your home search. Please call me at 805-637-7148 or email me at Daniel@ZiaGroup.com. I am available to speak more on these issues at your convenience. Have a good day.... more